#4 Surging Oil Prices

The result of Middle East political instability has been a surge in oil prices. That rise is affecting markets like China and India, that are already in tightening mode to contain price increases, but also developed markets like Europe and the United States.

Source: Citi analyst Guillermo Felices

#5 An Increase In Interest Rates In Developed Markets

Developed markets are now considering responding to rising food and fuel costs by raising rates. The move would mark an end to the easy money policies that have been in existence since the financial crisis.

#6 The End Of QE2

Quantitative easing 2, the U.S. government's program for bond buying, is set to end in June. The result of this end will be a tightening of U.S. monetary policy. It's no rate hike, but it certainly will mark an end to an easy money policy that's had an influence in propelling markets higher.

Source: Citi analyst Guillermo Felices

#7 Fiscal Cuts And Sovereign Debt Crises

While central bank easy money policies are coming to an end, government's on both sides of the Atlantic are also cutting fiscal expenditures due to sovereign debt worries.

These cuts are most obvious in Europe, where states like Greece and Ireland have been forced to consolidate fiscal policy by the IMF and EU, but they are also evidenced in states like Spain, where the government is trying to get ahead of the problem.

Across the Atlantic, the new U.S. Congress is fighting for budget cuts that will reduce stimulus spending.

All of this means less government support for economies that have not yet reached full recovery.

Source: Citi analyst Guillermo Felices

#8 The Japanese Disaster

On top of this established trend line comes the disaster in Japan. Beyond the horrible death and destruction created by the earthquake, tsunami, and reactor crisis, Japan's economy is now under threat from reduced production and supply chain issues.

The country will also be demanding more oil, as it tries to make up for its loss in nuclear power. This will add to the surging oil price problem.